Here's How Much Traders Expect Broadcom Stock To Move After Earnings

Key Takeaways

• Broadcom is set to report earnings after the closing bell Wednesday, with Wall Street analysts projecting record results on surging AI demand.
• Options pricing suggests traders expect Broadcom’s stock could move close to 8% in either direction in the days after its results.

Get personalized, AI-powered answers built on 27+ years of trusted expertise.

ASK

Broadcom is due to report earnings after the closing bell Wednesday. Traders anticipate the event could lead to a big swing in the chipmaker’s stock.

Options pricing suggests traders see Broadcom (AVGO) stock moving nearly 8% in either direction by the end of the week. A shift of that size from Tuesday’s close could lift shares back to around $339, recovering some of their recent losses, or pull them down to $289.

Shares of Broadcom have lost nearly one-quarter of their value from their December highs, amid concerns about growing competition, margin pressures from rising memory prices, and some skepticism around the sustainability of AI-driven growth. Many of its rivals, including Nvidia (NVDA) and Advanced Micro Devices (AMD), have also been pressured in recent weeks.

Why This Is Significant

Broadcom, like AI chip leader Nvidia, could be hard pressed to turn around weak sentiment with its results this week. Shares of Nvidia have lost ground in the wake of the company’s earnings last week, despite a blockbuster report.

Earlier this month, Bank of America analysts said they expect Broadcom to top consensus estimates, as major clients such as Google parent Alphabet (GOOGL) dramatically boost spending on AI infrastructure.

Jefferies analysts warned they see likely parallels with Nvidia’s recent performance, however. “We expect a significant beat & raise but this may not be enough to get things moving in the right direction,” they wrote.

Broadcom is seen reporting adjusted earnings per share of $2.02 on a nearly 29% year-over-year jump in revenue to a record $19.21 billion in its fiscal first quarter, according to estimates compiled by Visible Alpha.

Related Education

10 Biggest Semiconductor Companies

The Basics of Tech Stocks: 10 Tips Every New Investor Needs To Know

Wall Street analysts are overwhelmingly bullish on Broadcom’s stock. Of the 12 analysts with current ratings compiled by Visible Alpha, 11 have issued “buy” recommendations, compared to just one neutral rating. Their mean target around $454 would suggest they see the stock making a full recovery to new highs in the next 12 months.

Do you have a news tip for Investopedia reporters? Please email us at

[email protected]